23:35 | 13.05.2010
FreightCar America, Inc. Forgoes Dividend
FreightCar America, Inc. (NASDAQ: RAIL) announced that at its May 12,
2010 meeting, the Company’s Board of Directors decided not to authorize
the payment of a cash dividend on its common shares in the second
quarter of 2010. The decision reflects the Company’s strategy to
preserve cash in order to help maintain its balance sheet strength.
Ed Whalen, President and Chief Executive Officer, said, “FreightCar
America has a strong balance sheet and a strong market position. We are
committed to taking the necessary steps to maintain both during this
difficult market environment. The Board of Directors is sensitive to the
importance of paying a dividend to our shareholders, and we will
continue to regularly evaluate the payment of a dividend in light of
industry and market conditions and potential strategic opportunities.”
FreightCar America, Inc. manufactures railroad freight cars, with
particular expertise in coal-carrying railcars. In addition to coal
cars, FreightCar America designs and builds bulk commodity cars, flat
cars, mill gondola cars, intermodal cars, coil steel cars and motor
vehicle carriers. It is headquartered in Chicago, Illinois and has
facilities in Danville, Illinois, Roanoke, Virginia and Johnstown,
Pennsylvania. More information about FreightCar America is available on
its website at www.freightcaramerica.com.
This press release may contain statements relating to our expected
financial performance and/or future business prospects, events and plans
that are “forward-looking statements” as defined under the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
represent our estimates and assumptions only as of the date of this
press release. Our actual results may differ materially from the results
described in or anticipated by our forward-looking statements due to
certain risks and uncertainties. These potential risks and uncertainties
include, among other things: the cyclical nature of our business;
adverse economic and market conditions; fluctuating costs of raw
materials, including steel and aluminum, and delays in the delivery of
raw materials; our ability to maintain relationships with our suppliers
of railcar components; our reliance upon a small number of customers
that represent a large percentage of our sales; the variable purchase
patterns of our customers and the timing of completion, delivery and
acceptance of customer orders; the highly competitive nature of our
industry; the risk of lack of acceptance of our new railcar offerings by
our customers; and the additional risk factors described in our filings
with the Securities and Exchange Commission. We expressly disclaim any
duty to provide updates to any forward-looking statements made in this
press release, whether as a result of new information, future events or
otherwise.
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